Sheldon Toys Inc manufactures toy cannons. This period, beginning WIP inventory was 4000 units that were 30 per cent complete, and ending inventory was 2000 units that were 40 per cent complete. Beginning and ending WIP costs were $10 000 and $7000 respectively. Further, 9000 units were produced this year at a cost of $25 000.
-What are the total equivalent units worked on this period?
A) 9800
B) 10 200
C) 11 000
D) 9500

Question

Quizplus · Accepted Answer

Equivalent units = (Beginning WIP units x % complete) + (Units produced x 100%) + (Ending WIP units x % complete)= (4000 x 30%) + (9000 x 100%) + (2000 x 40%)= 1200 + 9000 + 800= 11000

Sheldon Toys Inc Manufactures Toy Cannons